Existing-home sales decreased 0.7% in May compared with April to a seasonally adjusted annual rate of 4.11 million, according to the National Association of Realtors (NAR).
Year-over-year, existing home sales were down 2.8%.
The decrease in sales comes despite a 6.7% increase in inventory. As of the end of May there were roughly 1.28 million existing homes available for sale in the U.S.
That’s about a 3.7-month supply at the current monthly sales pace.
The median existing-home sales price jumped 5.8% year-over-year to $419,300 – the highest median price ever recorded.
May marked the 11th consecutive month of year-over-year price gains.
In the four major U.S. regions, sales slid month-over-month in the South but were unchanged in the Northeast, Midwest and West.
Year-over-year, sales rose in the Midwest but receded in the Northeast, South and West.
“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” says Lawrence Yun, chief economist for NAR, in a statement. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”
“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” Yun adds. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.”
Photo: Ian MacDonald